Rare chance to buy Devonport commercial building
The modern architecturally-designed building at 30 Victoria Rd, Devonport.
In Devonport an architecturally-designed and multi-tenanted building with a penthouse apartment will go under hammer in two weeks presenting a rare buying opportunity in the seaside North Shore suburb where commercial properties are traditionally tightly held.
“This three-storey freestanding building gives investors the chance to acquire a high quality diversified asset,” says Matt Prentice of Colliers International who, with colleagues Shoneet Chand and Euan Stratton, is selling 30 Victoria Rd, Devonport, by auction at 11am on Wednesday March 16 unless it sells earlier by negotiation.
The building, on a 392sqm freehold site, comprises ground floor retail space, first floor office space and a four-bedroom penthouse apartment, spanning a total floor area of 851sqm.
Prentice says the property generates total income of $186,060 per annum and its several tenancies make it an appealing addition to any investor’s portfolio.
“With a total of four tenancies, it will provide the new owner with a split risk investment in one of Auckland’s most desirable locations.
“Many of Devonport’s owners and investors are long-term locals and there is no developable commercial land left in the village centre. Consequently, Devonport commercial properties come to the market very infrequently.”
Another important drawcard is the building’s solid concrete-slab construction.
“While it was built in the 1990s, an Initial Evaluation Procedure [IEP] assessment indicates an overall seismic rating of 100 per cent of New Building Standard [NBS] which is an excellent rating and well above the threshold for potentially earthquake prone buildings at 34 per cent NBS.”
The ground floor retail space is leased to two separate tenants:
Clothing shop Echo Boutique pays $22,680 plus GST and 10 per cent of operating expenses (OPEX) on an annual lease having a final expiry of November 30, 2017.
Flagstaff Gallery pays an annual lease of $53,550 plus GST and 40 per cent OPEX on a month-by-month tenancy.
The first floor commercial space is leased to Cockcroft D’Young Moorhouse Lawyers, paying $65,772.60 plus GST per annum plus 50 per cent OPEX. The latest lease has a final potential expiry date of July 31, 2023.
“Cockcroft D’Young Moorhouse Limited has been providing general legal services to the Devonport community and wider Auckland area for the past 40 years,” Prentice says.
Chand says the top-floor 290sqm penthouse apartment is fully leased to a long-term tenant paying $1733.34 in rent fortnightly.
“With expansive city and harbour views, the apartment is perfectly positioned in Devonport’s central retail and commercial hub on Victoria Rd - directly opposite a New World supermarket and moments away from an array of cafes and restaurants. It’s close to Devonport beach and only a short walk to the ferry terminal on Devonport Wharf.”
This wider view depicts 30 Victoria Rd, Devonport, in its streetscape.
He says the penthouse apartment has immediate add-value possibilities through renovation or further development which would increase future rental income.
“The site is zoned for retail uses under the current North Shore district plan and offers potential for further intensification under the Proposed Auckland Unitary Plan’s Town Centre’ zoning
“This zone provides for residential activity as well as predominantly smaller scale commercial activity, with a standard building height of four storeys. Greater height may be permitted close to the city centre, metropolitan centres and larger town centres.”
Stratton says Devonport is the fourth most visited destination in the Auckland region with its heritage buildings and many shops, cafes and restaurants in making it popular with day-trippers particularly during the weekends.
“Devonport is an important tourist destination with close to two million passengers, including many tourists, passing through the Devonport ferry terminal annually.”
Stratton says the suburb has an affluent population with the most recent Census data showing the median personal income for adults over 15 in Devonport-Takapuna being $35,300 per annum.
“This is significantly higher than for the adult population of Auckland as a whole at $29,600. Also 12.5 per cent of adults had a personal income of over $100,000 per annum in Devonport-Takapuna compared with 7.4 per cent throughout Auckland.”
(From left to right) Matt Prentice, Shoneet Chand, and Euan Stratton, of Colliers International